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SALT LAKE CITY, Sept. 26 /CNW/ -- Apex Resources Group, Inc. (OTC
Bulletin Board: APXR) announces Mackenzie Valley Pipeline hearings to resume
shortly.
After a Gas Symposium, in Anchorage on September 17, the Mackenzie Valley
Pipeline may finally be on track. Hearings by the Joint Review Panel are
scheduled for this fall &amp; winter and will be put before Canada's National
Energy Board for action in mid- to late 2008. ExxonMobil Corp. and
ConoccoPhillips Co., are now in Ottawa talking with Canadian federal officials
about fiscal incentives for the project. A regulation reform conference with
federal officials is taking place in Vancouver, BC, the week of September 24,
2007. The 1,200-kilometre Mackenzie Valley Pipeline could be operational in
2014 and would carry gas in the Mackenzie Delta near Inuvik to northern
Alberta, with an Alaska pipeline in operation a few years later.
Canadian Northwest Territories Minister the Hon. Brendan Bell called for
a joint Canada-U.S. federal task force to expedite Arctic gas pipelines from
Canada's Mackenzie Delta and the Alaska's North Slope, to focus on solutions
to overcome regulatory and other obstacles impeding the pipeline projects.
Bell has also been giving speeches &amp; presentations in the U.S. to industry &amp;
government groups seeking to "brand" an identity of Arctic gas from both
Alaska &amp; Canada as solutions to long term natural gas needs in North America.
Earlier this week, the National Energy Board, a Canadian federal energy
regulator, approved TransCanada Corp's plan to build and operate the Canadian
portion of the C$664-million Keystone oil pipeline from northern Alberta to
the U.S. markets. This project will be capable of shipping 435,000 barrels of
oil a day. The Board said that the benefits of the big energy project
outweighed the possible negatives, such as the impact on aboriginal
communities, domestic industries, crude oil supplies &amp; the environment.
The Conference Board of Canada warned that the increasing internal energy
demand in Canada is rising and might take a bite out of exports. The province
of Alberta demand alone for gas, driven by the oil sands expansion, will grow
from 2.9 bcf per day in 2005 to 4.7 bcf per day in 2015. While the province of
Ontario government is phasing out coal-fired power generating plants, it could
increase the demand for another 500 million cubic feet per day for gas-fired
facilities by 2015. However, Canada's supply is projected to be 16.8 bcf per
day by 2015, down 1.2 bcf per day from a decade earlier.
Exxon Mobil Corp., which controls Imperial, recently stated that the
project is on track as the proponents continue through the lengthy regulatory
process. However, the estimated cost of C$16.2-billion could rise. The project
will play a key role in meeting the increasing energy needs of Canada &amp; the
U.S. and will be uplifting for the Northwest Territories. ExxonMobil is the
key corporate decision maker in the project, owning 69.6 percent of consortium
leader Imperial Oil which has a 34.4 percent interest, while wholly owned
ExxonMobil Canada has another 5.2 percent.
In July, Indian &amp; Northern Affairs Canada released the results of its
2007 Call for Bids in the Beaufort Sea Mackenzie Delta area stating it had
accepted three bids with work bonus bids totaling CA$598.1 Million for
1,043,044 acres. One parcel in the package is owned by Imperial Oil Ventures
Limited (50%)and ExxonMobil Canada Properties (50%) with a work expenditure
bid of CA$585.0 Million.
"With the ongoing hearings and government and industry partnering to
expedite the completion process, and the financial commitments, it signals the
confidence these companies have in the completion of the Mackenzie Valley
Pipeline, and with the increasing demands for energy by both Canada &amp; the U.S.
at the current oil &amp; gas market prices, is great news for Apex," John Hickey,
Director of Apex Resources Group Inc. stated.
At current oil &amp; gas market prices, the Apex 3.745% working interest in
the Itiyok 1-27 well in the Beaufort Sea is valued as follows:
ITIYOK I-27 Significant Discovery Lease
Oil
(US$/Barrell) $ 79.3800
Gas (US$/ft) $ 6.3600
Apex Share of Project 3.7450 %
1) ITIYOK 640 ACRE PROVEN GAS &amp; OIL RESERVES:
Total Dollars Apex Dollars
Gas (Bscf) 108 $ 686,880,000.00 $25,723,656.00
Oil (MM STB) 8.976 $ 712,514,880.00 $26,683,682.26
$ 1,399,394,880.00 $52,407,338.26
2) ITIYOK 40KM PROBABLE GAS &amp; OIL RESERVES:
Total Dollars Apex Dollars
Gas (TCF) 1.16 $ 7,377,600,000.00 $ 276,291,120.00
Oil (MM STB) 160 $ 12,700,800,000.00 $ 475,644,960.00
$ 20,078,400,000.00 $ 751,936,080.00
3) ITIYOK 21.54KM POSSIBLE GAS &amp; OIL RESERVES:
Total Dollars Apex Dollars
Gas (Bscf) 625 $ 3,975,000,000.00 $ 148,863,750.00
Oil (MM STB) 86 $ 6,826,680,000.00 $ 255,659,166.00
$ 10,801,680,000.00 $ 404,522,916.00
GRAND TOTAL
Total Dollars Apex Dollars
Gas (Bscf) $ 12,039,480,000.00 $ 450,878,526.00
Oil (MM STB) $ 20,239,994,880.00 $ 757,987,808.26
$ 32,279,474,880.00 $ 1,208,866,334.26
NOTES:
Bscf Gas = Billion standard cubic feet of Gas
TCF Gas = Trillion Cubic Feet of Gas
MM STB Oil = Million Stock Tank Barrels of Oil
The partners in the Itiyok 1-27 Well are as follows:
IMPERIAL OIL RE

SOURCES LIMITED 1.23445%
CANADIAN FOREST OIL LTD. 1.084348%
677862 ALBERTA LTD 1.084348%
The Itiyok 1-27 Well was originally drilled in 1983, at a total cost of
CAD$85 million. A review of Well data and geological prognosis indicates that
a 640 acre area would contain proven recoverable gas reserves of 108 Bscf and
proven recoverable oil reserves of 8,976 MSTB, with Apex Resources Group Inc.
3.745 % working interest net reserves of 4.04 Bscf and 336 MSTB.
Seismic data indicates a structure closure of approximately 40 square KM
with a gross potential reserve of 1.16 TCF and 160 MMSTB (Apex 3.745 % working
interest net -- 34 Bscf and 4.7 MMSTB). The lands in which the Apex Resources
Group Inc. owns an interest comprised of 21.54 square KM containing gross
potential reserves of 625 Bscf of gas and 86 MMSTB of oil Apex 3.745 % working
interest net -- 23.4 Bscf of gas and 3.2 MMSTB of oil. Values of proven,
probable and possible gas and oil reserves, of Apex 3.745 % working interests,
as per Citadel Engineering report, have been published in previous news
releases.
The increased interest in the Beaufort Sea Reserves and completion of the
Mackenzie Valley Pipeline coupled with the North American need for fuel
continuing to increase, adds significant value to Apex Resources Group Inc.
3.745% working interest in the Itiyok 1-27 Well.
By the Board of Directors,
Apex Resources Group, Inc.
Investor Relations:
Eric David &amp; Sons
Ste # 501- 320
10 Schalks Crossing Road
Plainsboro, NJ 08536
Phone: (609) 529-3671
Website: ericdavid.com
Email: steveweiss@ericdavid.com
Apex Resources Group, Inc.
http://www.ApexResourcesGroup.com
John M. Hickey
Director
The foregoing contains forward-looking statements. For this purpose any
statements contained in this document that are not statements of historical
fact may be deemed to be forward-looking statements. Without limiting the
foregoing, such words a "may", "will", "believes", "anticipates", "estimates",
"continue", or comparable terminology intends to identify forward-looking
statements. These statements by their nature involve substantial risks and
uncertainties and actual results may differ materially depending upon a
variety of factors, including, but not limited to, the successful negotiation
and execution of the definitive acquisition agreement and receipt of certain
exhibits and schedules requested by Apex Resources Group, Inc.